Communication from the Ministry of Finance No 375 / 2008 Coll.
Communication from the Ministry of Finance determining the emission conditions of the Czech Debt, 2008 - 2016, VAR
Valid
Communication
Text versions:
13.10.2008
375
COMMUNICATION
Ministry of Finance
of 3 October 2008
determining the emission conditions of the Czech Debt, 2008 - 2016, VAR
The Ministry of Finance issues government bonds in accordance with Section 25 of Act No. 190 / 2004 Coll., on Bonds, as amended, (hereinafter referred to as "the Act on Bonds") and determines the emission conditions of the Czech Debt, 2008 - 2016, VAR:
1. Basic characteristics of bonds:
Issue: Czech Republic represented by Ministry of Finance
Name: Bonds of the Czech Republic, 2008 - 2016, VAR
Short name: Czech Republic, VAR, 16
Issue serial number: 55.
Nominal value: CZK 10 000
Form of the bond: bearer security
Debt form: book-entry security
Issuing date: 27 October 2008
Date of due date: 27 October 2016
Interest income: floating rate coupon
Taxation of interest income: according to Czech legislation
ISIN: CZ0001002331
2. The bonds are issued under Section 25 (2) of the bond law on the basis of special laws allowing the issue of sovereign debt.
3. The bonds are referred to the bearer and are issued in a book form. Owners' records shall be kept by the Securities Centre.
4. Bonds may be acquired by legal and natural persons with their registered office or residence in the Czech Republic and abroad. Repatriation of income and paid-up nominal value abroad will be carried out according to Czech legislation.
5. The issuer will submit a proposal for the admission of bonds to trading on the main market of the Prague Stock Exchange, a.s.
6. The bonds are remunerated at a floating interest rate. The reference rate shall be 6M PRIBOR at a rate fixed for 6 months applicable for one yield period. Interest income shall be paid twice a year on 27 April and 27 October of the year concerned. If the date of payment of the proceeds is not the working day, the payment shall be made on the first following working day without entitlement to the proceeds for such deferral.
7. For the first half-yearly yield period, the interest rate shall be fixed on the day of the auction. For the following six-month yield periods, the interest rate will be set two working days before the start of the new yield period and will be published on the date of establishment.
8. The operative date for the payment of the bond yield shall be one month before the maturity date of the bond yield. The date of the ex- coupon shall be the day following the operative date and shall be 28 March and 28 September. Interest income shall always be received by the investor who owns the bond on 27 March and 27 September of each year. Interest income for the first period from the date of issue until 27 April 2009 shall be received by the investor who owns the bond on 27 March 2009.
9. The transferability of bonds in the Securities Centre shall begin with the date on which the bonds are credited to the accounts of the first owners. The last day of the transfer of securities in the securities centre accounts is 27 September 2016.
10. The calculation of the proportion of interest is based on one year of 360 days and the actual number of days in the period (BCK - standard act / 360). The proportion of interest income is included in the price of the bond from the issue date.
11. Bonds will be issued in different parts (tranches). The primary sale of the 1st tranche will take the form of an American auction organised by the Czech National Bank for a group of direct participants on 22 October 2008. Other investors may participate in the auction through direct participants. The auction notice and the list of direct participants will be published in advance. The primary sale of further tranches will be carried out under the same conditions. The emission period shall expire on 27 September 2016.
12. Individual orders submitted to the auction by direct participants are satisfied gradually from the highest price offered. If, in order to gradually satisfy orders with a certain price offered, the satisfied volume of orders would exceed the volume of bonds sold by the issuer, orders with this price offered would be satisfied only partially. Bonds are sold at offered prices.
13. The total estimated volume of bond issuance is CZK 40 000 000 000. Bonds may be issued in smaller or larger volumes in accordance with Section 11 of the bond law to the extent that they correspond to the development and structure of State debt financing. The volume of emissions can be increased to a maximum of CZK 80,000 000 000.
14. The valid assessment of the financial capacity (rating) of long-term Crown liabilities at the date of issue of these emission conditions by Standard & Poor's is at A + level, Moody's at A1 level.
15. The separation of the bond yield right under Section 18 of the bond law is not allowed.
16. The Ministry of Finance declares that it owes each bond holder the nominal value of the bond. The bonds will be repaid at nominal value on 27 October 2016. From this day on, bond interest ends. The nominal value of the bond together with the last interest income will be paid to the investor who owns the bond on 27 September 2016. If the date of repayment of principal is not the working day, the payment shall be made on the first following working day without entitlement to the proceeds for such deferral.
17. All rights associated with bonds and coupons issued to them pursuant to Article 42 of the bond law shall be waived within 10 years of the date on which they could be applied for the first time.
18. The Ministry of Finance undertakes to secure the payment of interest income on bonds and to repay the nominal value of bonds to their owners under these emission conditions. The paying place is the Czech National Bank. Coupons and bond principal are paid by cash transfer or cash, according to the instructions of the bond holder. The payment venue shall publish the way in which the coupon payment and repayment of the nominal value will be made.
19. Bonds are direct, unconditional and unsubordinated liabilities of the Czech Republic, which are at the same level with all other existing and future direct, unconditional and unsubordinated liabilities of the Czech Republic.
20. The notices to the public regarding these bonds will be published in the Economic Newspapers or other similarly targeted newspapers, commonly available in the Czech Republic and in a way that allows remote access.
21. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of emission conditions, the Czech version will be decisive.
Minister:
Ing. Kalousek v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 375 / 2008 Coll., determining the emission conditions of the Czech Debt, 2008 - 2016, VAR |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 13.10.2008 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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